Impact of Self Help Groups on financial inclusion in India

There are over 7.8 million SHGs in India with over 780 million members.

Impact of SHGs:

Enable members of the SHGs to get included in the Banking System in India, thereby providing them access to bank account services, insurance, and ability to transfer money.

Reduced dependence on money lenders.

Women are empowered as they get financial control of their lives. This helps the family overall as children get stable access to education, nutrition and better looking after by an empowered mother.

Vulnerable sections of SCs and STs are benefitted.

Help members to borrow and lend money to make them financially empowered. With lending money they can earn a stable interest return and by borrowing they can start new livelihoods or take care of education for their children.

It helps members to understand the benefits of saving and investing money, thereby making them financially savvy.

Collective planning for additional income.

Platform to discuss their problems, financial and non-financial and make better decisions.

NABARD has shown that SHGs enable 58% of the households covered under SHGs reported an increase in assets